After strong quarterly figures between November and early December, the Lufthansa share price has significantly increased. The price increase in 5 weeks was around 30 percent. Recently, the share of the aviation company has again consolidated somewhat and is now quoted at around 8 euros (as of December 18th, around 9 a.m.).

This means that the Lufthansa share price has hardly moved since the beginning of the year – although 6.50 euros and more than 11 euros were briefly on the price board during the course of the year. In the long term, there is a lot to be said for the paper, because the sales and profits convince and the fundamental valuation is at least fair. The Lufthansa share is still a long way from being a self-runner.

Lufthansa: strong figures and low valuation The record quarter from July to September also convinced the investors: after the publication of the figures (sales just under 10.3 billion euros, net profit just under 1.2 billion euros), the Lufthansa share has made up part of the losses of the previous months. The prospects are also very decent. The demand is stable, the higher ticket prices improve the margin and in 2024 the load factor should almost reach the pre-corona level again.

For long-term investors, the Lufthansa share therefore seems to be an interesting option. Especially since the paper is not particularly highly valued due to the weak performance of recent years. For example, the estimated PE ratio for 2023 is currently around 5 and a dividend will also be paid out again for the current year.

Lufthansa share – turbulence not excluded Despite the good prospects and the moderate to low valuation, investors can never exclude corrections in the Lufthansa share. The aviation industry is not really predictable – political decisions such as the recent tax on domestic flights or rising kerosene prices can disrupt the planning at any time.

The analysts also have a divided opinion: only two weeks ago, for example, Goldman Sachs raised the target price for the Lufthansa share slightly to 10.30 euros, while JPMorgan downgraded the paper and drastically reduced the target price from 12.50 to 7 euros. Lower returns for 2024 are feared, among other things.

The Lufthansa share remains vulnerable to fluctuations and price corrections due to some uncertainties, such as political or economic uncertainties. In the long run, however, the paper is still interesting for investors – an entry into the DAX in the coming quarters is possible under certain circumstances.